While the UK’s decision to designate Google with “strategic market status” is a landmark moment, it is only the first step on a long and complex road to regulating the tech giant. The Competition and Market Authority (CMA) has been clear that the designation itself does not result in immediate action or penalties.
The real work begins now. The “strategic market status” (SMS) designation is the legal key that unlocks the door to the next phase: a formal consultation process. Later this year, the CMA will launch this consultation to design specific “conduct requirements” that Google will be legally obliged to follow.
This process will involve gathering evidence and feedback from a wide range of stakeholders, including Google itself, its competitors, publishers, advertisers, and consumer groups. The CMA will have to weigh competing arguments—such as Google’s claims that regulation will stifle innovation against competitors’ calls for a more level playing field.
Designing effective remedies will be challenging. For example, how should a “choice screen” be designed to be truly effective? What constitutes “fair ranking” in an algorithm? How can publishers be given more control without breaking the functionality of AI search features? These are complex technical and economic questions that will require careful consideration.
Once the rules are finalized, the CMA will then be responsible for monitoring and enforcing them, which will be an ongoing task. Therefore, while Friday’s announcement was a decisive move, the full impact of this new regulatory regime on Google and the UK’s digital market will only become clear over the coming months and years.